§ 26. Subordination of liens after agreement with owner. In case an
owner of real property shall execute to one or more persons, or a
corporation, as trustee or trustees, a bond and mortgage or a note and
mortgage affecting such property in whole or in part, or an assignment
of the moneys due or to become due under a contract for a building loan
in relation to such property, and in case such mortgage, if any, shall
be recorded in the office of the register of the county where such real
property is situated, or if such county has no register then in the
office of the clerk of such county, and in case such assignment, if any,
shall be filed in the office of the clerk of the county where such real
property is situated; and in case lienors having mechanics' liens
against said real property, notices of which have been filed up to and
not later than fifteen days after the recording of such mortgage or the
filing of such assignment, and which liens have not been discharged as
in this article provided, shall, to the extent of at least fifty-five
per centum of the aggregate amount for which such notices of liens have
been so filed, approve such bond and mortgage or such note and mortgage,
if any, and such assignment, if any, by an instrument or instruments in
writing, duly acknowledged and filed in the office of such county clerk,
then all mechanics' liens for labor performed or material furnished
prior to the recording of such mortgage or filing of such assignment,
whether notices thereof have been theretofore or are thereafter filed
and which have not been discharged as in this article provided, shall be
subordinate to the lien of such trust bond and mortgage or such trust
note and mortgage to the extent of the aggregate amount of all
certificates of interest therein issued by such trustee or trustees, or
their successors, for moneys loaned, materials furnished, labor
performed and any other indebtedness incurred after said trust mortgage
shall have been recorded, and for expenses in connection with said trust
mortgage, and shall also be subordinate to the lien of the bond and
mortgage or note and mortgage, given to secure the amount agreed to be
advanced under such contract for a building loan to the extent of the
amount which shall be advanced by the holder of such bond and mortgage
or such note and mortgage to the trustee or trustees, or their
successors, under such assignment. The provisions of this section shall
apply to all bonds and mortgages and notes and mortgages and all
assignments of moneys due, or to become due under building loan
contracts executed by such owner, in like manner, and recorded or filed,
from time to time as hereinbefore provided. In case of an assignment to
trustees under the provisions of this section, the trustees and their
successors shall be the agents of the assignor to receive and receipt
for any and all sums advanced by the holder of the building loan bond
and mortgage or the building loan note and mortgage under the building
loan contract and such assignment. No lienor shall have any priority
over the bond and mortgage or note and mortgage given to secure the
money agreed to be advanced under a building loan contract or over the
advances made thereunder, by reason of any act preceding the making and
approval of such assignment.